Blockchain Revolution Series: Bank of China Pilots Blockchain-Based Bond Issuance, PBoC Eyes on Cryptocurrency and Fintech Projects

Quite a few analysts rumoured that the Chinese government is planning to accumulate Bitcoin, and others expecting a wave of new investment into Chinese blockchain companies.

The blockchain technology deployment in China has been remarkably gaining its traction. Evidently, the Bank of China has reportedly issued CNY 20 billion ($2.8 billion) in blockchain-powered special financial bonds for small and micro-enterprises.

The funds are particularly utilized to issue loans to Chinese MSMEs to encourage in their developmental activities of the economy.

HSBC has performed the first blockchain-based letter of credit transaction denominated in Chinese yuan in the recent past.

In China, amid the growing interests in Blockchain and Cryptocurrency on President Xi Jiping’s commentaries, the Chinese authorities countered on Facebook’s Libra after the official introduces their central bank’s digital currency. Huang Qifan, the vice chairman of the China International Economic Exchange Center, announced the name of the digital currency to be launched by the People’s Bank of China, DCEP. 

The People’s Bank of China (PBOC), is intending to roll out the pilot project focused on digital currency payments in two of its major cities, Shenzhen and Suzhou. Thereby, PBoC appears to bring-in the test its highly anticipating and much-awaited digital currency electronic payment (DC/EP) solution in Shenzhen and Suzhou as a pilot. With that context, PBoC is also looking to establish prudential regulatory solutions targeted towards Fintech development.